ANAND MEHTA Vs. UNION OF INDIA

JUDGEMENT

(1.) Mr. Anand Mehta and Mr. Deepak Mehta have filed this writ petition against the Union of India, through the Ministry of Finance, Department of Revenue (Respondent No. 1), the Central Board of Direct Taxes (CBDT) (Respondent No. 2), the Chief Commissioner of Income Tax -II (CCIT), New Delhi (Respondent No. 3) and the Appropriate Authority, Income Tax Department (ITD) (Respondent No.4), seeking directions to the Respondents to perform and complete all the requisite formalities to confirm the sale of property at No. 27, Bazar Lane, New Delhi -110001 (hereafter referred to as the property in question) in favour of the Petitioners. Background facts

(2.) The background facts are that one Mr. Raghbir Singh, a resident of Model Town, Ludhiana, decided to acquire a residential property in Delhi on ownership basis. He approached Smt. Vidyawati and her sons for that purpose. Smt. Vidyawati owned the property in question having acquired it under a registered Gift Deed in October, 1950. Initially Mr. Raghbir Singh negotiated to purchase the right, title and interest in the whole of the terrace floor with mumty over the ground floor together with 50% undivided share in the plot of land at a total consideration of Rs. 3. 25 lakh.

(3.) Accordingly, an Agreement to Sell was entered into on 11th July, 1992 between Mr. Raghbir Singh on the one hand and Smt. Vidyawati and her sons on the other. There was some delay in Smt. Vidyawati discharging her obligations. Further negotiations between the parties aimed at selling the entire property to Mr Raghbir Singh were not successful. Instead Smt Vidyawati offered the rear portion to Mr. Raghbir Singh for a total consideration of Rs. 7.50 lakh and in acceptance thereof he had paid Rs. 3 lakh to Smt. Vidyawati.